What does a non-renewal of an insurance policy mean?

A non-renewal of an insurance policy indicates that the insurer has decided to discontinue coverage once the current policy term ends. This means that there will be no renewal of the policy, and the insured will not have coverage after the expiration date unless they seek a new policy or the same policy under different terms.

Typically, non-renewal is initiated by the insurer for a variety of reasons, such as changes in underwriting guidelines, increases in risk associated with the insured, or insufficient claims experience. It is distinct from other actions like modifications to the policy or a cancellation initiated by the insured, as those involve different circumstances and outcomes regarding the insurance contract. Understanding non-renewal is crucial for maintaining continuous coverage and ensuring that proper arrangements can be made before a policy expires.